QuickBooks Online Year-End Checklist: Step-by-Step 4th Quarter Audit
- Emily Jett
- Oct 23
- 3 min read
As the year comes to a close, it’s time to give your books a good scrub. A 4th quarter audit in QuickBooks Online isn’t about an IRS knock at your door — it’s a self-audit. Think of it as tidying your financial house before inviting your accountant in for year-end.
Here’s a step-by-step checklist you can follow inside QuickBooks Online to make sure your books are accurate, organized, and tax-ready.
1. Reconcile All Bank & Credit Card Accounts
Reconciliations are the foundation of clean books.
Go to Accounting > Reconcile in QuickBooks Online.
Match your transactions to your December statement balance.
Repeat for every month through December.
Tip: Don’t skip a month. Even one missing reconciliation can throw your entire year-end off track.
2. Review Accounts Receivable (Unpaid Invoices)
Your A/R report shows who still owes you money.
Go to Reports > Accounts Receivable Aging Summary.
Review overdue invoices.
Follow up with clients before year-end to collect.
Pro tip: If some invoices are truly uncollectible, consider writing them off before you roll into the new year.
3. Review Accounts Payable (Unpaid Bills)
Flip the lens to see what you owe vendors.
Go to Reports > Accounts Payable Aging Summary.
Check that unpaid bills are real and not duplicates.
Resolve any old bills that should have been closed out.
4. Run Your Profit & Loss Statement
Your P&L shows income and expenses for the year.
Go to Reports > Profit & Loss.
Look for miscategorized expenses.
Move anything in “Uncategorized” or “Ask My Accountant” into the right bucket.
Remove personal expenses that slipped into your business account.
Why it matters: Accurate categorization saves you money at tax time.
5. Check the Balance Sheet
The Balance Sheet gives you a year-end snapshot.
Go to Reports > Balance Sheet.
Verify that bank balances match reconciled amounts.
Confirm loans are correct.
Review equity and retained earnings.
6. Review Payroll Records
Payroll is one area where mistakes can cost you big.
Go to Payroll > Reports.
Review year-to-date wages, withholdings, and employer taxes.
Make sure totals match what you’ve remitted.
In January: You’ll be issuing W-2s (US) or T4s (Canada), so catching errors now saves headaches later.
7. Verify Sales Tax (GST/HST in Canada)
Don’t leave sales tax unchecked.
In the US: Go to Taxes > Sales Tax.
In Canada: Go to Taxes > Sales Tax for GST/HST or provincial tax.
Confirm filings are accurate and up to date.
8. Run Year-End Reports for Your Accountant
Bundle your reports for easy sharing.
Go to Reports > Management Reports.
Export a package including your Profit & Loss, Balance Sheet, and General Ledger.
Bonus Step: Lock Your Books
Once your accountant signs off, lock it in!
Go to Settings > Accounts and Settings > Advanced.
Turn on Close the Books and set a closing date.
This prevents accidental changes to finalized numbers.
Final Thoughts
Doing a 4th quarter audit in QuickBooks Online may sound intimidating, but when you break it down step by step, it’s simply about:
✔ Reconciling accounts
✔ Reviewing income and expenses
✔ Double-checking payroll and taxes
✔ Preparing reports for year-end
This process gives you confidence heading into tax season and ensures your business starts the new year on solid financial ground.
Join the Conversation
What’s the trickiest part of year-end for you? Reconciling? Cleaning up categories? Payroll? Drop your answer in the comments — I’d love to hear your experience.